Asante Company is pleased to announce that the Company has completed the final payment to Resolute Mining Limited (“Resolute”) pursuant to an amendment letter agreement that was signed on August 24, 2022 (see press release dated August 31, 2022).
The amendment provided for a 90-day extension of time for the final tranche deferred payment of US$30 million in connection with the US$90 million acquisition of Mensin Gold Bibiani Limited, which subsidiary company owns a 90% interest in the Bibiani Gold Mine (“Bibiani”). The revised payment terms included payment of US$10 million on or before September 19, 2022 (completed), US$10 million on or before October 19, 2022 (completed) and the final payment due on or before November 18, 2022 (completed).
Bibiani Gold Mine – Timeline from Acquisition to Production
Asante has successfully advanced development of the Bibiani Gold Mine from initial acquisition to commercial production over the past 15 months:
- Acquired the Bibiani Gold Mine from Resolute on August 4, 2021
- Initiated refurbishment of the process plant September 5, 2021
- Commenced open pit mining operations February 28, 2022
- Completed refurbishment and commissioning of the process plant, with start of operations June 2, 2022
- First gold pour completed July 7, 2022, two months ahead of schedule
- Filed an updated NI 43-101 report for the Bibiani Gold Mine on September 1, 2022
- Commercial production announced November 10, 2022
- Final payment for Bibiani Gold Mine completed
Near mine exploration programs, with planned drilling of approximately 30,000 metres per year for 2022, 2023 and 2024, are expected to extend the Bibiani open pit Life of Mine (LOM) of 8.3 years.
With respect to the recent announcement by the Government of Ghana requiring gold producers to sell 20% of annual production in Cedis, the Company notes that the initiative has been discussed with gold producers in Ghana, represented by the Chamber of Mines for several months. The Company notes that the local currency expenditure requirement of Asante and most mining companies far exceeds this request. The feedback presented by the Chamber of Mines has been that the industry in Ghana exceeds this level of expenditure in Cedis. The Company confirms that this requirement will not affect its activities and conduct of business.